Annual_Report_1987_001 - Laserfiche WebLink

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CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEM6EA 31, 1987 Note 1- Summary of Significant Accounting Policies (Continued) percentage increase in households or popuLation, uhichever is greaten Levies for honded indebtedness are not Limited 6y the law. Taxes payabLe on homestead property (as defined 6y State statutes) are partialty reduced by a homestead credit. This credit is paid to the City 6y the State in Lieu of taxes Levied against homestead property. The State remits this credit in two equal instaLLments in Juty and Decemher each year. SpeciaL Assessments - Special assessments are Levied against the benetited properties for the assessa6Le costs of special assessment improvement projects in accordance with State statutes. The City usualty adopts� the assessment roLLs when the individual projects are complete or suhstantiatly compleie. The assessments are colLecti6Le over a term of years generaLly consistent with the term of years ot the related bond issue. Cotlection of annuaL instaLtments (incWding interest) is handted by the County in the same manner as property taxes. Property owners are aLLowed to prepay totaL future installments without inte�est or p�epayment penalties. Inventories - InvenTories held hy the Enterprise funds are stated at the Lower of cost or market, using the first-in, first-out method. The cost of inventory is recognized as expense at the time the items are sold or used (consumption method). Utility service charges are recognized when earned with no aLLowance for uncoLlecti6Les as delinquent ac[ounts are certified as a Lien against the property billed. .�nbilled utility service charges are incLuded in receivables at year-end. Encumbrances - Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund 6alances since they do not constituYe expenditures or Lia6ilities. VacaTion, Sick and Compensatory Time Off Pay - The CiTy compensates employees upon termi�ation for unused vatation and compensatory time oft. Employees are not compensated for unused sitk pay upon termination of emptoyment, except upon retirement, at which time empLoyees are entitled to one-haLf of their accumuLated leave up to one month's pay. Vacation and compensatory time off are accrued when earned and sick pay is expensed when payment is made in the proprietary funds. Vacation, compensatory time off, and sick pay are recognized when payment is made in the governmentaL funds. Liabitity for the governmental funds is reftected in the Generat Long-Term De6t Account Group representing the City's commitment to fund such costs from future operations. Ctaims - There are a number of ctaims for worker's compensation and Liabitity damage in the internal service funds which have occurred but have not yet been conveyed to the City on December 31 of ea<h year. The City prepares an estimate of those cLaims based on historicaL information and su6sequent events. The amount of the estimate is expensed and shown as a current Liability for the reporting year. Comparative Date - Comparative data for the prior year have 6een presented to provide an understanding of change5 in the City's tinancial position and operations. Toiat CoLumns on Com6ined Statements - TotaL coLumns on the com6ined statements are captioned "Memorandum Onty" to indicate they are presented onty to faciLitate� financiat anatysis. Data in these coWmns do not present financial position, results of operations, or changes in f9nanciat position in conformity with generalLy accepted accoun[ing principtes. Neither is such data compara6le to a consotidation. Interfund eliminations have not been made in the aggregation of this data. -32-